Biden Did It—SVB Collapse—Blame Biden

 

Biden elected—high inflation—-high interest rates—jump in bond returns—-bank failures—Biden bailout—more bank failures .

Don’t let Joe back peddle away from blame for the collapse of the SVBank. Today I heard him state that the fault lay with  “the previous administration”  

Here is the truth.  Joe’s first act as President was to cut the legs from under the fossil fuel industry to placate the “greens” of his party.That act spiked fuel prices, which set off an inflationary spiral which Biden’s trillion dollar spending splurge only expanded and aggravated.  The high inflation rate ,  spiking to 9%, the highest in four decades,  forced the FED to raise interest rates. Higher interest rates drove returns on US Treasury bonds from 1.3% to 5% in less than a year. This affected all banks.  US banks  now hold some $650 billion in Treasury notes  

SVBank had deposits of $180 billion and most of its substantial  $200 billion assets in US. bonds.  (This was not responsible banking practices, a more diverse asset investment would have saved this bank.)  But the US bonds the bank held — were worth much less when newer US bonds returned almost five times the amount of the older bonds.  

A call on the Banks’s assets led to a forced a bond sale, a short fall, inability to meet deposit withdrawal  and eventual collapse of the bank. 

Biden’s ideological green policies and irresponsible politically-motivated spending led to this economic disaster.  

Biden made the situation even worse by  bailing out the depositors of this bank ..who were insured -like all US depositors—to only $250, 000.  Most of SVBs depositors (90%) irresponsibly had well over that amount on deposit in that bank.  Many had tens of millions on deposit  

Many  of these depositors were Democrat supporters.  Perhaps this had leverage in DC  where there seems two systems of justice and now two systems of banking  

Bailing out this bank makes it more likely that other banks and depositors will follow these irresponsible behaviors. 

Like Biden’s verbal and legal encouragement of millions of illegal immigrants to jump our border fences, here in the financial sector, he is encouraging irresponsible banking practices to favor a small clique of supporters and ignores the welfare of the nation.  His policies will have more undesirable, dangerous results than those that he whispered over his microphone